In April 2024, the government officially removed the lifetime allowance (LTA) which restricted overall pension savings, and replaced it with the lump sum allowance (LSA) and the lump sum and death benefit allowance (LSDBA).
These limit the amount of tax-free cash that can be paid from pension schemes.
If you wish to take your NHS Pension Scheme benefits, you need to let the NHS Pensions Agency know about any pension benefits you have already taken (this could be a pension, a lump sum or an income drawdown).
To do this, you will need to complete a PTD1 form so that calculations can be run correctly under the new lump sum allowances. The form will specify if you have taken any pension benefits and if you have a valid protection certificate from HMRC.
The form will also allow inflationary increases to be paid on your pension benefits. If your NHS pension is in payment, it is reviewed every April and should increase at that time in line with the official rate of inflation as set by the Consumer Prices Index (CPI).
For more information, please contact your adviser or to request the form directly, please contact NHS Pensions.
Approver Quilter Financial Services Ltd 13/08/2025
